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The value of orders for the renovation of dwellings received by construction companies in Japan amounted to around *** trillion Japanese yen in the fiscal year 2024. This represented a year-on-year decline of *** percent. The total value of orders for building renovation rose by *** percent.

Home renovation market in Japan

´³²¹±è²¹²Ô’s home renovation market, which included costs for refurbishments, facility repair and maintenance, and furniture and interior, reached *** trillion yen in 2023 and was forecast to expand to *** trillion yen by 2030. Home renovations only account for a small share of new home constructions in Japan, as consumers tend to prefer new homes over used ones. This is because housing policies of the past decades have encouraged the supply of new homes instead of focusing on utilizing the existing housing stock. However, the situation could change, as recently, new homes have become increasingly expensive due to soaring material prices and labor costs.

´³²¹±è²¹²Ô’s housing stock

Due to the focus on new constructions, Japan has a massive housing stock of around ** million units. Policies have emphasized quantity over quality, and many homes do not meet the current standards for insulation performance, which is a reason for consumers to avoid second-hand homes. Improving the quality of ´³²¹±è²¹²Ô’s housing stock could become a driver for growth in the renovation market, especially considering the government’s goal to achieve carbon neutrality by 2050. Next to repair and maintenance works, energy-saving measures, disaster prevention, and home modifications for the elderly were already the main purposes of home renovation orders in fiscal 2024.